Softbank to raise USD 30 bln in IPO of Japan mobile business - report

Nieuws Mobiel Japan 7 AUG 2018
Softbank to raise USD 30 bln in IPO of Japan mobile business - report

Softbank may target a valuation of USD 90 billion for its Japanese mobile business when it lists the company on the stock market, people familiar with the matter told Bloomberg. Softbank is considering selling a third of the company, raising around USD 30 billion for its investments, the report said. 

A USD 30 billion-IPO would make Softbank Mobile the largest listing ever, ahead of Alibaba raising USD 25 billion in 2014. 

SoftBank is seeking a higher price-to-earnings premium for its wireless business than its rivals NTT Docomo and KDDI, according to the report. Shareholders believe the cash-rich company’s guaranteed dividend yield as well as its technology partnerships and the benefits of being linked to the parent firm, may help achieve that higher valuation, the sources said said. NTT Docomo ended 06 August with a market value of almost USD 100 billion, while KDDI was at about USD 70 billion.

Softbank has made a preliminary filing for the IPO in Tokyo, and the listing could take place in Q4, the report said. 

Categories:

Mobiel

Companies:

NTT Docomo,  KDDI,  Softbank Mobile,  Softbank

Countries:

Japan

Tags:

Finance

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